19 December 2025 | 1:02AM HKT Equity Research CHINA TRANSPORTATION 2026 Outlook: Staying positive on Airlines and Tankers; Turning bearish on Containers Our analysis points to 3 areas of mispricing/opportunities: 1) higher international demand for Airlines, while supply constraint remains, leading to Airlines reaching above-cycle ROEs of 22% in 2027. Although Japan-related risks are to be watched in 1H in particular – we remain positive on Airlines, 2) Supply resumption in Containership leads us to turn bea ...

Group 1: Delta Airlines - Delta Airlines is expected to benefit from lower interest rates due to its asset-heavy nature and significant debt from purchasing new airplanes and modernizing its fleet [2][3] - Fuel costs account for about one-third of Delta's earnings per share (EPS), making lower oil prices advantageous for the company [3][6] - Delta targets higher-end consumers, benefiting from premium seats and corporate travel, which remains strong despite tighter consumer wallets [3][4] Group 2: Viking Cruises - Viking Cruises is positioned to benefit from a Fed rate cut as consumers will experience lower credit costs and potential tax rebates, easing their financial burden [5] - The company has a strong booking rate, with 70% of its capacity for 2026 already booked, indicating robust demand for its high-end cruise offerings [7] - Viking's continued investment in cruise ships and lower debt levels provide a favorable outlook for earnings growth [7][8] Group 3: Lowe's - Lowe's is seen as a strong investment in an improving housing market, particularly if mortgage rates drop below 6% [9][10] - The company is well-positioned to benefit from increased consumer spending on home remodeling and appliances, which have been stagnant [10][11] - Lowe's serves both the construction and professional markets, making it a solid choice for investors looking for exposure to the housing sector [10][11]

Group 1 - The core point of the article is that Exxon is implementing job cuts as part of a broader trend among large oil companies responding to the challenges posed by lower oil prices [1] Group 2 - The oil industry is currently facing a period of adaptation due to declining oil prices, leading to significant operational changes [1]